Centre for Democracy and Economic Development Initiatives-CDEDI demands transparency and accountability from Illovo Sugar Company on its price buildup-from cane production, crushing, refining to packaging-for the nation to appreciate why it still sticks to exorbitant domestic sugar prices.
The demand follows revelations that Illovo has reduced the industrial sugar price by 6 percent but remains silent on the price of domestic sugar; used by many Malawians.
In a letter to Trade and Industry Minister, Simplex Chithyola Banda, dated 19 June 2023, Illovo Managing Director, Lekani Katandula other stakeholders that use industrial sugar as a raw material are satisfied with the offer.
“We look forward to your confirmation, Honorable Minister that the proposal made herein meets your expectations and that you will be proceeding to rescind the 20, 000 tons of brown sugar import permits, without issuing any new sugar import licenses for which we will be most grateful,” writes Katandula.
But CDEDI Executive Director, Sylvester Namiwa tells Chithyola Banda that Malawians expect locally-produced sugar to be accessible and affordable regardless of their status.
Namiwa therefore wants the minister to invoke Section 4 of the Control of Goods Act {GOGA} of 2018 and declare that sugar is no longer a protected commodity.
“It is our sincere belief that the GOGA was meant to protect interests of Malawians as opposed to shielding monopolies and cartels,” says Namiwa in a statement.
A few days ago, the minister told Nation Online that government was analysing the company’s position on the reduction of sugar prices and waiting for other stakeholders’ submissions before making its determination on the matter.
He said: “They [Illovo] responded to our ultimatum so as a ministry we are now analysing their response. Once that is completed, we will appropriately advise the general public our position.”
Meanwhile, CDEDI indicates that the Parliamentary Committee on Trade and Industry has failed to conduct a public hearing on sugar production and pricing as per the organization’s earlier request due to lack of funds.
We couldn’t independently verify the information with the Committee’s chairperson, Paul Nkhoma.
Locally, the price of sugar has been on the rise for the past years. Currently, a kilogram of domestic sugar trades at K1 500 while for industries goes at about K1.283 million per metric ton.
Initially, the line ministry had threatened to issue more import licenses to more industry players if Illovo failed to reduce the sugar price within seven days. (The Radar
